The Oregon Economic and Community Development Department aims to enhance Oregon's economy by working with various stakeholders to support sustainable growth and job creation. The document outlines various funding programs available for businesses, including long-term loans, credit enhancement funds, and resources for entrepreneurs, as well as comprehensive support services for government contracting and business retention. Additionally, it provides information on the USDA loan programs and rural development initiatives focused on supporting agriculture and rural communities.

1. Oregon Economic and Community Development Department Our mission is to advance Oregon's economy . We look forward to paving the way for continued sustainable economic development in Oregon, and working with the Governor, private industry and other state agency partners to ensure opportunity for Oregonians today and beyond. Gabe Silva, Small Business Services Officer 503-986-0161 [email_address] http://www.oregon4biz.com/smbiz.htm

2. Oregon Business Development Fund www.oregon4biz.com/obdf.htm Statewide revolving loan fund providing long-term, fixed-rate financing for: Land Buildings Equipment Term working capital

3. Oregon Business Development Fund Job creation/retention Gap financing Manufacturing, other traded-sector businesses Up to 40% total project cost, max. $700,000 Private lender required, usually 10% min. equity Good and sufficient collateral

4. Credit Enhancement Fund www.oregon4biz.com/cef.htm Guarantee bank loans – Increase availability of capital to assist Oregon businesses in creating/retaining jobs Traded sector business focus - national, international markets Distressed areas – all businesses eligible; administratively quick and easy Bank sets rates and terms

5. Credit Enhancement Fund Working capital lines of credit Evergreen Entrants Initial working capital line Maximum $500,000 or 75% Fee: 1.25% of insured amount annually Evergreen Plus Expand working capital line Maximum $500,000 or 90% of new increment Fee: 2.5% of insured amount annually

6. Credit Enhancement Fund Term loans Conventional Insurance Up to 90% guarantee Maximum $700,000 Fee: 1.25% to 3% of insured amount depending on term Secured predominately by fixed assets First Loss Insurance 100% insurance on first 25% of loan amount Maximum $300,000 Fee: 2.5% to 6% of insured amount depending on term Secured predominately by fixed assets

7. Industrial Development Bond www.oregon4biz.com/idrb.htm - Provides low-cost financing for projects Issue tax exempt bonds for manufacturing ( includes - software , biotech processes) and solid waste facilities (and some non-profits). Key Federal IRS requirements for projects: $ 10 million maximum bond amount $20 million capital expenditures limit Fixed assets only, generally new fixed assets

8. Capital Access Program www.oregon4biz.com/cap.htm Provides loan portfolio loss reserve to increase availability of bank loans to small businesses Transaction between borrower/lender; bank assesses risk, sets loan terms Borrower pays fee 3%-7% of loan; goes into loss reserve fund held at bank

9. Capital Access Program OECDD matches fee; distressed areas and new banks receive double match Reserve grows as lenders participate; drawn on to cover default losses Quick turnaround 3–5 days Term loan or line of credit Virtually any type of business qualifies Exceptions: construction or purchase of residential housing property not used for business operations , existing loan refinancing

10. Entrepreneurial Development Loan Fund www.oregon4biz.com/edlf.htm Micro-lending fund to support start-ups Borrower applies through Small Business Development Center or certified entity Benefit to banking community - A funding source you can refer customers to that are not yet bankable Up to $25,000 initial loan; follow-on loans available Rate: Fixed, prime plus 2.0% 5 year maximum, equity of 20% of loan amount needed.

11. Business Finance Staff Gary Ross, Business Finance Officer 503–986–0167 David Weiss, Business Finance Officer 503–986–0170 Les Livengood, Business Finance Officer 503–986–0169 Terry Hegle, Business Finance Officer 503–986–0168 Laura Engstrom, Business Finance Officer 503–986–0174 Pamela Brunell, Administrative Assistant 503–986–0172

12. Business Retention Services fund http://www.oregon4biz.com/brs.htm Program providing consulting services to assist Oregon companies facing difficult changes. Consultant is matched to a company based on specific needs and industry requirements Interest-free loan Specific eligibility criteria: emerging industries/clusters with high potential for job creation/retention, traded sector, emergent technologies and distressed areas.

13. Government Contract Assistance Program GCAP Bid Match – Daily computer matching of contract opportunities with your company including: www.GedBizOpps.gov opportunities starting at $25,000 from federal agencies Simplified acquisitions opportunities under $100,000 from several major buying agencies for products only International bid opportunities State and local leads

14. Government Contract Assistance Program Workshops, seminars and individual business training in: Selling to the Government Bid preparation GSA MAS (Multiple Award Schedule) RFID (Radio Frequency Identification) Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR)

15. Government Contract Assistance Program Support Services: Access to Federal Acquisition Regulations and Policy Government database registrations Government certifications assistance Bid packets and proposals Protest procedures and information Contract administration

16. Government Contract Assistance Program Local GCAP Offices: Springfield: 541-736-1088 or 800-497-7551 North Bend: 541-756-5596 Portland: 503-635-3921 or 800-803-7175

17. Service Providers Small Business Development Centers - Statewide www.BIZCENTER.ORG Targeted Service Providers : OAME, ONABEN, OMEN, HMC, East County One-stop, Interface Network, Edev, Partnership to End Poverty, GCAP, Philippine American Chamber of Commerce, Shorebank Enterprise Cascadia. http://www.oregon4biz.com/smbiz.htm

18. Recovery and Stimulus Program Information Economic Stimulus and Recovery: "The Oregon Way“ http://www.oregon.gov/recovery/ To register and search a list of available opportunities with the state of Oregon, please visit the Oregon Procurement Information Network (ORPIN) http://orpin.oregon.gov/open.dll/welcome Small Business Administration Program Plan http://www.recovery.gov/?q=content/program-plan&program_id=5437 Federal Government, Building the Recovery http://www.recovery.gov/

19. www.Grants.gov Find Grant Opportunities Get Registered Apply for Grants Track My Application Applicant Resources Search FAQs, User Guides and Site Information

20. www.govloans.gov/govlaons_en.portal VETS Puts America’s Heroes to Work Hurricane Preparedness: Are You Ready? For All U.S. Residents. FREE. Finding the right loan for you is easy at GovLoans.gov! All Loans Agriculture Business Disaster Relief Education Housing Veteran

21. Gateway to government loan information Agencies whose loan programs are represented on this site: U.S. Department of Agriculture U.S. Department of Commerce U.S. Department of Education U.S. Department of Housing & Urban Development U.S. Department of Veterans Affairs U.S. Small Business Administration

22. SBA - ARC Stabilization Loan Program Recovery Plan The America’s Recovery Capital (ARC) loan program will: offer up to $35,000 to help viable small businesses that need help in paying their existing loans to get through a short-term downturn. free up capital for these small businesses, with the SBA fully subsidizing the interest payment. 100% Guarantee to lender http://www.recovery.gov/?q=content/program-plan&program_id=5437

23. SBA Administrator Karen Mills Business Journal New, May 16, 2009 “ ARC loans are for viable businesses that need some help today to pay interest and principal on an existing non-SBA loan.” “ After the six months of payment, this ARC loan does not have to be paid off at all for the next year, and then there’s usually five years after that to repay them.” Question: What sort of response are you getting from lenders? “These are loans that help their loans, these are for non-SBA loans. It’s very good for them.”

24. SBA 7(a) Loan For Small Businesses - Typically for new businesses, lack of earnings history, insufficient collateral, longer terms. Applicant goes directly to bank, bank applies to SBA, bank closes and services loan, SBA pays guaranty if default. Lender makes loan under SBA guidelines: Loans up to 150,000 – 85% Loans over 150,000 – 75%

25. SBA 7(a) Loan SBA guidelines (continued): Max. guaranty is 1.5 million Max. loan size is 2 million Rate is negotiated between borrowers and lender subject to SBA maximums (generally 2 ¼ over prime for loans less than 7 years and 2 ¾ over 7 years)

26. SBA 504 Loan Program Suited for larger capital expansion projects, 50/40/10 structure is typical; designed to facilitate job creation. 1.5 MM for regular loans, 2.0 MM for public policy loans, 4.0 MM for small manufacturer loans. Recovery Act changes include elimination of guarantee fees and increase of guarantee percent, waives processing and third party participation fees, etc.

27. SBA Portland District Contacts Dennis Lloyd, Lead Lender Relations Specialist: 503-326-5205. Russ Hooker , Lender Relations Specialist: 503-326-5200. E-mail: [email_address]

28. USDA - Farm Service Agency (FSA) Provides loans, loan guarantees and business planning to eligible farmers, ranchers and others to support a thriving agricultural economy. Up to 90% or 95% of Guarantee of: Principle Accrued Interest FSA Authorized Protective Advances Any Subsidy Payment Due (Interest Assistance)

29. Types of FSA Guarantees Annual Operating Loans (operating expenses, family living expenses, debt service payments) Intermediate Term Operating Loans (capital purchases like machinery and equipment, debt restructuring and refinancing). Farm Ownership Loans – Purchase or Improve Land or Restructure Debt

30. FSA Guaranteed Loan Limits, Interest Rates, Loan Terms Operating Loans or Lines of Credit: $1,094,000 Farm Ownership Loans: $1,094,000 Interest Rates must not exceed the rate charged to “average” agricultural loan customer. Loan terms vary: 1 year (Annual Operating Loans), 3 to 5 years (Multi-year Lines of Credit), up to 7 years (Intermediate Term Loans) and up to 40 years (Real Estate Loans).

31. Farm Service Agency Contacts Lynn Voigt, Farm Loan Chief, 503-692-1973 x256 [email_address] Bob Perry, Farm Loan Specialist, 503-692-1973 x257 [email_address] Peter Halvorson, Farm Loan Specialist, 503-692-1973 x 255. [email_address] FSA Website: www.usda.fsa.gov

32. USDA Rural Development (RD) An umbrella of federal agencies within USDA serving the needs of rural America Housing Programs – single & multi-family housing Community Programs – community facilities & infrastructure Business & Coop Programs – business development

33. A few of RD’s guaranteed loan programs Business & Industry ( B&I ) Guaranteed Loans Rural Energy for America ( REAP ) Guaranteed Loans Community Facilities ( CF ) Guaranteed Loans

34. Business & Industry (B&I) Guaranteed Loans The B&I program is lender-driven . USDA guarantees the loan rather than lending directly. A commercial lender requests the B&I guarantee, and, if approved, it makes (and services) the loan . Federal guarantee for lenders on their rural business loans: 80% guarantee on loans up to $5 million 70% guarantee on loans from $5-10 million Size of loans: No minimum, but usually from $200,000 up to $10 million .

35. B&I: Eligible Businesses Retail Manufacturing Wholesale Service Hotels & motels Nonprofits Nurseries Vertically-integrated Timber & forestry agri-businesses (e.g. wineries ) and Commercial investment property Retail centers, office buildings, industrial facilities, etc. - No owner-occupancy required .

36. B&I: Rates and Terms Negotiated between lender & business Interest rate : Fixed or variable (quarterly or longer) Structure : Fully amortized; no balloons Working capital – up to 7 years Equipment – up to 15 years Real estate – up to 30 years Prepayment penalty : – OK

37. Underwriting requirements The business and its owners must have a good credit history . The business must have tangible balance sheet equity position at loan closing/project completion: 10% or more (for existing businesses) = Debt/ Tangible Worth ratio of ≤ 9.0 20% or more (for new businesses) = Debt/ Tangible Worth ratio of ≤ 4.0 There must be adequate collateral ( Real estate, Accounts receivable , Inventory ) and hazard and life insurance, etc.

38. Rural Energy for America (REAP) Guaranteed Program 70-85% guarantees on loans up to $25 MM Loans to: Rural small businesses (SBA definition) Farmers & ranchers Loans for up to 75% of the cost of : Installing renewable energy systems Installing energy eff. improvements $20,000 Grants for renewable energy generating systems . Deadline is 7-31-09.

39. Community Facilities (CF) Guaranteed Program 90% guarantees on loans up to $25 million ! (Communities of ≤ 20,000 population) Loans to: Nonprofits Public bodies & Tribes Loans for: Developing/improving community facilities e.g. hospitals & health clinics, community centers, emergency vehicles, public schools, museums, etc.

40. USDA Rural Development Oregon Portland (State Office)*  Pendleton *  Corvallis *  Redmond *  Roseburg * Jeff Deiss, Business & Cooperative Program Director – 503-414-3367 USDA Rural Development, Oregon www.RuralOregon.biz